Formula Systems (1985) Ltd. (FORTY) Financial Ratios
28 years of historical data (1998–2025) · Technology · Information Technology Services
EV/EBITDA
↓
3.05
↓-34% vs avg
5yr avg: 4.61
30Y Low1.4·High17.1
P/FCF
↓
4.62
↓-28% vs avg
5yr avg: 6.37
30Y Low2.0·High52.3
P/B Ratio
↓
0.99
↓-14% vs avg
5yr avg: 1.16
30Y Low0.3·High1.6
ROE
↓
1.8%
↑-64% vs avg
5yr avg: 4.9%
30Y Low-17%·High17%
Debt/EBITDA
↓
1.73
↓-9% vs avg
5yr avg: 1.90
30Y Low0.7·High18.3
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
FORTY Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Formula Systems (1985) Ltd. trades at 62.7x earnings, 79% above its 5-year average of 35.0x, sitting at the 92nd percentile of its historical range. Compared to the Technology sector median P/E of 29.0x, the stock trades at a premium of 116%. On a free-cash-flow basis, the stock trades at 4.6x P/FCF, 28% below the 5-year average of 6.4x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.7B | $2.6B | $1.4B | $1.0B | $1.1B | $1.9B | $1.3B | $1.0B | $555M | $597M | $616M |
| Enterprise Value | $1.0B | $1.9B | $1.6B | $1.2B | $1.3B | $2.1B | $1.5B | $1.3B | $668M | $696M | $637M |
| P/E Ratio → | 62.72 | 92.79 | 17.49 | 15.85 | 13.61 | 35.42 | 28.41 | 11.30 | 17.22 | 54.80 | 26.64 |
| P/S Ratio | 0.65 | 1.00 | 0.50 | 0.39 | 0.43 | 0.79 | 0.68 | 0.62 | 0.37 | 0.44 | 0.56 |
| P/B Ratio | 0.99 | 1.47 | 1.00 | 0.77 | 0.93 | 1.62 | 1.18 | 1.17 | 0.69 | 0.77 | 0.85 |
| P/FCF | 4.62 | 7.03 | 4.71 | 3.85 | 5.50 | 10.76 | 5.07 | 6.56 | 8.96 | 9.62 | 11.07 |
| P/OCF | 4.43 | 6.74 | 4.29 | 3.43 | 4.60 | 9.16 | 4.56 | 5.34 | 6.72 | 7.37 | 8.22 |
P/E links to full P/E history page with 30-year chart
FORTY EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Formula Systems (1985) Ltd.'s enterprise value stands at 3.0x EBITDA, 34% below its 5-year average of 4.6x. The Technology sector median is 16.7x, placing the stock at a 82% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.74 | 0.57 | 0.47 | 0.52 | 0.89 | 0.76 | 0.75 | 0.45 | 0.51 | 0.57 |
| EV / EBITDA | 3.05 | 5.69 | 4.08 | 3.41 | 3.39 | 6.47 | 5.54 | 9.25 | 4.22 | 5.93 | 5.27 |
| EV / EBIT | 5.53 | 10.33 | 5.82 | 4.93 | 4.71 | 10.15 | 8.64 | 9.25 | 5.87 | 11.19 | 7.50 |
| EV / FCF | — | 5.20 | 5.32 | 4.68 | 6.64 | 12.05 | 5.71 | 8.03 | 10.77 | 11.21 | 11.44 |
FORTY Profitability
Margins and return-on-capital ratios measuring operating efficiency
Formula Systems (1985) Ltd. earns an operating margin of 7.1%. Operating margins have compressed from 9.1% to 7.1% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 1.8% is modest. ROIC of 10.6% represents solid returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 17.0% | 17.0% | 24.8% | 24.6% | 24.2% | 23.4% | 23.1% | 22.7% | 22.3% | 21.9% | 23.3% |
| Operating Margin | 7.1% | 7.1% | 9.8% | 9.1% | 10.8% | 8.6% | 8.8% | 3.0% | 7.3% | 5.4% | 8.0% |
| Net Profit Margin | 1.1% | 1.1% | 2.9% | 2.4% | 3.2% | 2.3% | 2.4% | 5.4% | 2.2% | 0.8% | 2.0% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 1.8% | 1.8% | 5.9% | 5.2% | 6.9% | 4.8% | 4.7% | 10.9% | 4.1% | 1.5% | 3.2% |
| ROA | 0.9% | 0.9% | 2.7% | 2.3% | 2.9% | 2.1% | 2.0% | 4.9% | 2.0% | 0.8% | 1.7% |
| ROIC | 10.6% | 10.6% | 13.1% | 12.2% | 14.8% | 11.6% | 10.6% | 3.8% | 9.2% | 6.8% | 9.2% |
| ROCE | 9.1% | 9.1% | 14.6% | 13.2% | 15.4% | 11.7% | 10.8% | 4.0% | 9.6% | 6.9% | 9.0% |
FORTY Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Formula Systems (1985) Ltd. carries a Debt/EBITDA ratio of 1.7x, which is manageable (41% below the sector average of 2.9x). The company holds a net cash position — cash of $1.3B exceeds total debt of $592M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of 6.2x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.33 | 0.33 | 0.50 | 0.51 | 0.66 | 0.60 | 0.60 | 0.67 | 0.47 | 0.45 | 0.36 |
| Debt / EBITDA | 1.73 | 1.73 | 1.79 | 1.85 | 1.97 | 2.16 | 2.51 | 4.36 | 2.41 | 2.94 | 2.14 |
| Net Debt / Equity | — | -0.38 | 0.13 | 0.17 | 0.19 | 0.19 | 0.15 | 0.26 | 0.14 | 0.13 | 0.03 |
| Net Debt / EBITDA | -2.01 | -2.01 | 0.47 | 0.60 | 0.58 | 0.69 | 0.63 | 1.69 | 0.71 | 0.84 | 0.17 |
| Debt / FCF | — | -1.84 | 0.61 | 0.83 | 1.14 | 1.28 | 0.65 | 1.47 | 1.82 | 1.60 | 0.37 |
| Interest Coverage | 6.15 | 6.15 | 12.22 | 6.50 | 11.29 | 7.96 | 6.64 | 6.48 | 7.71 | 2.14 | 5.67 |
Net cash position: cash ($1.3B) exceeds total debt ($592M)
FORTY Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.63x means Formula Systems (1985) Ltd. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has improved from 1.40x to 1.63x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.63 | 1.63 | 1.30 | 1.40 | 1.37 | 1.38 | 1.49 | 1.44 | 1.48 | 1.69 | 1.76 |
| Quick Ratio | 1.61 | 1.61 | 1.28 | 1.35 | 1.33 | 1.35 | 1.46 | 1.43 | 1.48 | 1.69 | 1.75 |
| Cash Ratio | 0.96 | 0.96 | 0.49 | 0.54 | 0.57 | 0.54 | 0.68 | 0.60 | 0.56 | 0.64 | 0.77 |
| Asset Turnover | — | 0.73 | 0.91 | 0.93 | 0.92 | 0.88 | 0.77 | 0.81 | 0.90 | 0.87 | 0.82 |
| Inventory Turnover | 72.62 | 72.62 | 67.48 | 47.07 | 55.42 | 86.78 | 61.97 | 183.77 | 298.73 | 320.80 | 214.99 |
| Days Sales Outstanding | — | 106.75 | 110.95 | 100.41 | 102.88 | 109.18 | 104.96 | 110.08 | 111.61 | 108.84 | 108.31 |
FORTY Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Formula Systems (1985) Ltd. returns 1.6% to shareholders annually primarily through dividends. The payout ratio exceeds 100% at 101.7%, meaning the company is paying out more than it earns — this level is unsustainable long-term without earnings recovery. The earnings yield of 1.6% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.6% | 1.1% | 1.4% | 1.0% | 2.0% | 1.2% | 1.1% | 1.2% | 0.9% | 2.0% | 1.6% |
| Payout Ratio | 101.7% | 101.7% | 23.6% | 15.5% | 26.8% | 40.5% | 31.9% | 14.0% | 15.6% | 108.0% | 44.6% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.6% | 1.1% | 5.7% | 6.3% | 7.3% | 2.8% | 3.5% | 8.9% | 5.8% | 1.8% | 3.8% |
| FCF Yield | 21.6% | 14.2% | 21.2% | 26.0% | 18.2% | 9.3% | 19.7% | 15.2% | 11.2% | 10.4% | 9.0% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.6% | 1.1% | 1.4% | 1.0% | 2.0% | 1.2% | 1.1% | 1.3% | 0.9% | 2.0% | 1.6% |
| Shares Outstanding | — | $16M | $16M | $15M | $16M | $15M | $15M | $15M | $16M | $15M | $16M |
Peer Comparison
Compare FORTY with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 FORTYYou | $2B | 62.7 | 3.0 | 4.6 | 17.0% | 7.1% | 1.8% | 10.6% | 1.7 |
 NICE | $5B | 8.8 | 5.8 | 7.3 | 66.4% | 21.9% | 16.4% | 13.2% | 0.2 |
 CHKP | $13B | 12.7 | 14.0 | 10.6 | 85.4% | 30.5% | 37.3% | 23.2% | 2.1 |
 MNDY | $4B | 31.9 | 207.0 | 11.8 | 89.2% | -0.1% | 10.4% | -2.4% | 25.9 |
 WIX | $2B | 48.3 | 108.8 | 4.1 | 68.1% | 0.1% | — | 0.2% | 47.8 |
 CTSH | $21B | 9.6 | 5.0 | 8.0 | 33.7% | 16.7% | 15.2% | 18.7% | 0.4 |
 EPAM | $4B | 11.4 | 4.4 | 6.5 | 26.5% | 9.6% | 10.3% | 15.5% | 0.2 |
 GLOB | $1B | 13.4 | 4.7 | 5.1 | 35.0% | 7.0% | 4.9% | 5.5% | 1.4 |
 INFY | $43B | 13.9 | 8.8 | 10.5 | 30.5% | 21.1% | 28.9% | 31.8% | 0.2 |
 WIT | $25B | 18.1 | 13.4 | 15.4 | 30.7% | 17.0% | 16.8% | 13.4% | 1.1 |
 KFRC | $830M | 23.2 | 16.1 | 17.7 | 26.8% | 3.8% | 24.9% | 19.1% | 1.3 |
| Technology Median | — | 29.0 | 16.7 | 19.1 | 48.8% | 0.2% | 1.6% | 2.7% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 28 years · Updated daily
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FORTY — Frequently Asked Questions
Quick answers to the most common questions about buying FORTY stock.
What is Formula Systems (1985) Ltd.'s P/E ratio?
Formula Systems (1985) Ltd.'s current P/E ratio is 62.7x. The historical average is 21.1x. This places it at the 92th percentile of its historical range.
What is Formula Systems (1985) Ltd.'s EV/EBITDA?
Formula Systems (1985) Ltd.'s current EV/EBITDA is 3.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 5.0x.
What is Formula Systems (1985) Ltd.'s ROE?
Formula Systems (1985) Ltd.'s return on equity (ROE) is 1.8%. The historical average is 5.6%.
Is FORTY stock overvalued?
Based on historical data, Formula Systems (1985) Ltd. is trading at a P/E of 62.7x. This is at the 92th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Formula Systems (1985) Ltd.'s dividend yield?
Formula Systems (1985) Ltd.'s current dividend yield is 1.62% with a payout ratio of 101.7%.
What are Formula Systems (1985) Ltd.'s profit margins?
Formula Systems (1985) Ltd. has 17.0% gross margin and 7.1% operating margin.
How much debt does Formula Systems (1985) Ltd. have?
Formula Systems (1985) Ltd.'s Debt/EBITDA ratio is 1.7x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.